Safety Insurance Group, Inc.

Safety Insurance Group, Inc.

SAFTยทNASDAQ

$68.19

-1.6%
Financial ServicesInsurance - Property & Casualty

Safety Insurance Group, Inc. provides private passenger and commercial automobile, and homeowner insurance in the United States. The company's private passenger automobile policies offer coverage for bodily injury and property damage to others, no-fault personal injury coverage for the insured/insured's car occupants, and physical damage coverage for an insured's own vehicle for collision or other perils. It also provides commercial automobile policies that offer insurance for commercial vehicles used for business purposes, including private passenger-type vehicles, trucks, tractors and trailers, insure individual vehicles, and commercial fleets; and homeowners policies, which provide coverage for homes, condominiums, and apartments for losses to a dwelling and its contents from various perils, and coverage for liability to others arising from ownership or occupancy. In addition, the company offers business owners policies that cover apartments and residential condominiums, restaurants, office condominiums, processing and services businesses, special trade contractors, and wholesalers. Further, it provides personal umbrella policies, which provide personal excess liability coverage over and above the limits of individual automobile, watercraft, and homeowner's insurance policies; and commercial umbrella and business owner policies, as well as underwrites dwelling fire insurance for non-owner-occupied residences. Additionally, the company offers inland marine coverage for homeowners and business owner policies, and watercraft coverage for small and medium sized pleasure crafts. It distributes its products through independent agents. The company was formerly known as Safety Holdings Inc and changed its name to Safety Insurance Group, Inc. in April 2002. Safety Insurance Group, Inc. was founded in 1979 and is headquartered in Boston, Massachusetts.

At a Glance

Live Snapshot
Market Cap$1.00B
EPS6.7200
P/E Ratio10.15
Earnings Date08/05/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is compressed (P/E 10.2).

Valuation inputs: P/E 10.2, earnings yield +9.9%, momentum -1.6%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is strong (ROE +11.1%, ROIC +23.3%).

Profitability stack: net margin +7.9%, ROE +11.1%, ROIC +23.3%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +63.9%, momentum -1.6%, net margin +7.9%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

saft

Safety Insurance Group, Inc. Market vs Earnings Trajectory

SAFT ยท NASDAQ

Loading price and EPS data...

Safety Insurance Group, Inc.

Safety Insurance Group, Inc. Fair Value Envelope

SAFT ยท NASDAQ

Our analysis suggests that SAFT has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $68.195, this represents a potential HIDDEN relative to our calculated worth for Safety Insurance Group, Inc..

Intrinsic Value
Current Price: $68.195
3Y+112.0%
5Y-27.0%
10Y+57.0%
3Y+60.0%
5Y+49.0%
10Y+54.0%
3Y+113.0%
5Y-28.0%
10Y+54.0%
3Y+339.0%
5Y+78.0%
10Y+97.0%
3Y+355.0%
5Y+93.0%
10Y+104.0%
3Y+25.0%
5Y+20.0%
10Y+41.0%
Safety Insurance Group, Inc.

Safety Insurance Group, Inc. Profit Bridge

SAFT ยท NASDAQ
Revenue1.25B
Cost of Goods Sold (797.18M)
Gross Profit456.89M
Operating Expenses (330.21M)
Operating Income126.68M
Interest Expense (1.53M)
Other Income/Expense0.00
Pretax Income126.68M
Income Tax (27.43M)
Net Income99.25M
Net Income
99.25M

Profitability Analysis

Gross Margin

36.4%

Strong gross margins indicate healthy pricing and efficient production or service delivery.

Operating Margin

10.1%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

7.9%

Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.

Effective Tax Rate

21.7%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.

36.43%
Gross Profit Margin
3%
3Y-2.0%
5Y-30.0%
10Y-64.0%
10.10%
Operating Profit Margin
25%
3Y+33.0%
5Y-51.0%
10Y-12.0%
7.91%
Net Profit Margin
24%
3Y+33.0%
5Y-52.0%
10Y-
11.12%
Return on Equity
30%
3Y+94.0%
5Y-29.0%
10Y+16.0%
4.02%
Return on Assets
29%
3Y+70.0%
5Y-40.0%
10Y+9.0%
23.30%
Return on Invested Capital
-90%
3Y+736.0%
5Y-95.0%
10Y+40.0%
SAFT

Safety Insurance Group, Inc. Cash Conversion Engine

SAFT ยท NASDAQ
Net Income99.25M
Depreciation & Amortization-1.57M
Stock-Based Compensation4.83M
Change in Working Capital103.90M
Others-9.99M
Capital Expenditures-2.51M
Free Cash Flow191.99M

Cash Flow Quality Analysis

FCF Conversion Rate

193.4%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

1.3%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+54.4%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$103.90M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

saft

Safety Insurance Group, Inc. Funding & Solvency Profile

SAFT ยท NASDAQ
Cash & Cash Equivalents54.83M
Net Receivables313.43M
Inventory0.00
Other Current Assets0.00
Total Current Assets368 M
Property, Plant & Equipment11.10M
Goodwill & Intangible Assets23.64M
Long-Term Investments0.00
Other Non-Current Assets0.00
Total Non-Current Assets11 M
Total Assets
2.43B

Financial Health Analysis

Current Ratio

33.17x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

1.84x

Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.

Working Capital

357 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

15% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

Financial Health Insight

Mixed signals: Strong short-term liquidity provides comfort, but high overall leverage requires careful monitoring of debt servicing capabilities and refinancing risk.

saft

Safety Insurance Group, Inc. Street Expectations Map

SAFT ยท NASDAQ

No Target Data

No analyst price targets available for saft.

saft

Safety Insurance Group, Inc. Insider Positioning

SAFT ยท NASDAQ

During the last 12 months, insiders have purchased $292K and sold $3.13M worth of SAFT shares, resulting in $2.83M of net selling activity.

3 Months

Bought

0

0.00

Sold

15.3K

1.09M

Net Activity

-1.1M

-$1.09M

3-6 Months

Bought

0

0.00

Sold

26.3K

2.03M

Net Activity

-2.0M

-$2.03M

6-9 Months

Bought

55

3.94K

Sold

0

0.00

Net Activity

+4K

+$4K

9-12 Months

Bought

4.0K

287.76K

Sold

0

0.00

Net Activity

+288K

+$288K

Top Buyers

1
LDJ

Langwell Dennis J.

Director

4.0K sharesโ€ข2 transactions

$288K

2
HG

Hiltpold Glenn

Officer: Vp Of Actuarial Services

55 sharesโ€ข1 transactions

$4K

Top Sellers

1
SC

Srb Corp

10 Percent Owner

41.6K sharesโ€ข8 transactions

$3.13M

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $2.83M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.09:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$1.09M

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

Moderate Buying

2 insider buyers vs. 1 sellers. More insiders buying than selling indicates positive sentiment.

Insider Activity Insight

Persistent selling pressure: Consistent insider selling with weak buy/sell ratio suggests insiders may be capitalizing on current valuation. Exercise caution and review recent earnings quality and management commentary.

1.27%
Dividend Yield
7%
3Y+1.0%
5Y+13.0%
10Y+11.0%
ย 

saft Dividend History

SAFT
10Y CAGR +3%
Latest $0.92
Annual $4.58
5 year growth trend
Last Period: +0%